UPDATE On December 6, 2019, Ericsson (NASDAQ: ERIC) entered into a Deferred Prosecution Agreement with the Department of Justice (DOJ). It agreed to pay more than $1 billion to resolve probes into alleged corruption, including the bribing of government officials, according to Reuters. The DOJ said the bribery took place over many years in countries including China, Vietnam and Djibouti.
At that time, the company admitted it conspired with others to violate the Foreign Corrupt Practices Act from at least 2000 to 2016, by engaging in a scheme to pay bribes and to falsify books and records. It also admitted it failed to implement reasonable internal accounting controls, the Justice Department said.
Now, Ericsson says the DOJ told the company it breached its obligations under the deal by failing to provide certain documents and factual information. Ericsson says it will respond to explain the nature and circumstances of the breach, as well as the actions it’s taken to address and remediate the situation.
At this stage it’s premature to predict the outcome of these developments, according to the company. The DOJ has sole discretion under the agreement to determine whether a breach occurred. Ericsson said Friday it intends to continue cooperating with the DOJ consistent with the terms of the agreement, including requirements regarding production of documents.
A spokesperson for the DOJ did not immediately respond to Reuters’ request for comment.
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